The objective is to prevent fraud at entry-level. It enables the Bank to understand the customers and their financial dealings to manage their risks prudently. The KYC policy includes: Customer acceptance policy. Customer Identification procedures. Monitoring of Transactions and Risk Management. Among them, important are Customer Identification and monitoring the Transactions. Customer Identification means...
Continue readingIncome Tax Rebate Under Section 87A
A rebate is one of the income tax provisions that help taxpayers reduce their tax liability. Taxpayers earning an income under a certain limit have the benefit of paying marginally lower taxes. Let’s know the rebate available under section 87A in detail: Eligibility to claim rebate u/s 87A You can claim the benefit of...
Continue readingConcept of forensic accounting and audit
Forensic means suitable for use in a court of law which gives confidence and sound professional judgment and it is to that standard and potential outcome that forensic accountants generally have to work. It provides detailed oriented workings. Forensic accounting can be described as it is a specialized field of accountancy that investigates fraud,...
Continue readingPRIVATE PLACEMENT OF SHARES
Private placement means an offer or invitation to subscribe or issue of securities to a selected group of persons by a company other than by way of the public offer, through private placement offer-cum-application. Private Placement Offer cum Application A company may make a private placement of securities. A company shall issue private placement...
Continue readingBONUS SHARES
When a company is prosperous and accumulates large distributable profits, it converts these accumulated profits into capital and divides the capital among the existing members in proportion to their entitlements. Members do not have to pay any amount for such shares. A company may, if its Articles provide, capitalize its profits by issuing fully-paid...
Continue readingThe requirement of Forensic Audit
While conducting a forensic audit the auditor should follow certain steps which are as follows: 1. Initialization Meeting with the client accepting the engagement: In order to understand important facts, players, and issues, etc., the investigator must meet the client. It is to be considered initially that whether his form has the necessary skills...
Continue readingEmployee Reimbursement under GST
GST Act & Law The applicability of GST on employee reimbursements, and some related rules: According to section 7 clause 1 of schedule III, of the CGST Act, 2017, services provided by the employee to the employer in the course of or in relation to his employment shall never be treated as supply of...
Continue readingResidential Status
Residential Status for Income Tax – Individuals & Residents The Income Tax Department needs to determine the residential status of an individual or company. It becomes particularly important during the tax filing season. This is one of the factors based on which a person’s taxability is decided. Let us examine the residential status and...
Continue readingBasics of Income Tax
Administration of income tax Ministry of Finance Department of Revenue CBDT Assessing Officers Commissioners Charging Section – Section 4 Section 4 of the Income-tax Act is the charging section which states that: The tax shall be charged at the rates prescribed, for the year, by the annual Finance Act. The charge is on every...
Continue readingProcedure to issue and redemption of Preference Shares
(1) To issue preference shares the Article of Association (AOA) of the company should authorize it, if not then the amendment must be made in the Article of Association (AOA) of the company. The company must ensure that there is no default in the redemption of preference shares earlier or payment of dividend to...
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